Tech Stocks in Motion

Updated from 12:52 p.m. EDT

Shares of Ditech Communications(DITC Quote) were among technology's losers Friday, falling 38.1% after the company posted mixed fourth-quarter results and said that first-quarter sales would be significantly below expectations.

The telecom equipment maker earned $7.6 million, or 23 cents a share, on sales of $23 million. Analysts polled by Thomson First Call were expecting earnings of 22 cents a share on sales of $23.4 million. A year ago, the company earned $8.3 million, or 24 cents a share, on sales of $23.1 million. Looking ahead, Ditech forecast first-quarter sales of $10 million to $11 million. Analysts had been expecting sales of $24 million. Ditech blamed the shortfall on a decline in orders from Nextel Communications(NXTL Quote), which is completing its merger with Sprint(FON Quote). "This unavoidably impacts our short-term outlook," Ditech said. Shares traded down $4.80 to $7.73.

Stratex Networks(STXN Quote) fell modestly after the provider of wireless transmission technology reaffirmed its first-quarter outlook. The company expects a loss of 3 cents to 4 cents a share on sales of $47 million to $50 million. Gross margin is expected to be between 22% and 23%. Analysts are expecting a loss of 5 cents a share on sales of $48.5 million. Stratex said that guidance reflects two recent orders totaling $19 million from India and Bangladesh. Shares were traded down 1 cent, or 0.6%, to $1.75. ...